Wyoming-based crypto-focused bank Custodia Bank’s application to join the Federal Reserve system was rejected by the US Federal Reserve (FED), citing significant risks.
Custodia Bank January 27 on his official social media account. in the statementsent to them by the Fed. your rejection letter announced that their request to join the Federal Reserve system was turned down.
In the statement made by the FED, as the reason for the rejection of Custodia Bank focused on cryptocurrencies of the new business model for the financial system significant risks shown to carry. The Fed also risk management and money laundering and financing of terrorism its capacity to prevent cryptocurrencies addresses concerns about the cryptocurrency ecosystem. insufficient reported that.
CEO of Custodia Bank Caitlin Long made on the subject press releasethe bank insufficient Despite the regulated cryptocurrency ecosystem safe, regulated and Trustworthy efforts to offer an alternative by the Fed. 72 hours like record He said it was rejected after a while.
Although Custodia Bank’s FED membership was rejected of the Federal Reserve It enables users to connect directly to payment systems, allowing them to shop more easily with other member institutions. main account application if still on hold was stated.